Gold rose and palladium hit a record high yesterday as the dollar was dented by expectations that the US Federal Reserve would halt its rate-hiking cycle for the year, lifting demand for the metals from holders of other currencies.
“The precious metals complex is fairly well supported given the loose monetary turn coming out of the Fed,” ING analyst Warren Patterson said.
Fed Chairman Jerome Powell on Friday said the central bank would be more sensitive to downside risks in the market, adding that it was “prepared to shift the stance of policy” if needed.
Gold tends to gain when interest rate hike expectations ease because lower rates reduce the opportunity cost of holding non-yielding bullion.
Spot gold was up about 0,6 percent at $1,292.41 per ounce as of 1254 GMT. US gold futures gained 0,6 percent to $1,293.90 per ounce.
The dollar weakened on growing bets the Fed would pause its rate hike cycle in the coming months after Friday’s comments from Chairman Jerome Powell.
source: the herald